Introduction Chevron has been looking for ways to create or improve their energy sources that can provide more efficient energy moving into the future. Some areas of energy they have explored were solar energy and biofuels. Over the past 3 years Chevron has experienced major decline in the bottom line contribution compared to previous years that was at a steady amount. Below Chevrons financial health and technology advances they have used to keep up with competitors or the world today. Financial Health
Chevron’s financial statement was compared them to Exxon Mobil and British Petroleum (BP) financials from 2008-2010. When looking at the 3 year comparison Chevron generated less money than B.P, but Chevron contributed more to the bottom line in 2010. When reviewing the balance sheet for the three companies a few things stood out to me. According to “yahoo finance”(2012) “the total liabilities paid varied between Exxon $155M, B.P $177M, and Chevron $79M”(Balance Sheet), this can be a reflection of the oil spill and environmental trouble that B.P and Exon experienced within those three years. Another line on the balance sheet was capital surplus chevron has a $14M increase each year, but Exon and B.P do not.
On the cash flow statement Exon and B.P were able to receive around $3-$14M in earnings from other investments, while chevron lost about $130K in 2010 (Chevron Corporation Common Stock). In 2008 and 2009 Chevron was the company receiving a profit, while B.P would receive a small return or experience a los all together. Overall Chevron has a great financial health. They are currently paying the least in liabilities; the company is still growing despite their struggles in 2009. In 2009 Chevron bottom line dropped almost $10M compared to 2008, but were able to do $19M more in 2010(“Chevron Corporation Common Stock” 2012). This shows that Chevron is making the necessary changes to promote growth and stability. Technological Advantages & Globalization
Chevron is constantly looking into new ways to improve their business. Chevron has been researching and perfecting their use of solar energy, over the past few years. Solar energy is power that can be converted into other forms of energy. Solar power can help alleviate capacity problems on local utility systems, especially during peak electricity demand periods ("Solar Energy", 2011). Like one its competitors (B.P) Chevron is also researching Biofuels.
Biofuels are fuels made from recently living organisms. Chevron has three categories of biofuels first generation, second generation and third generation. First generation was the first form of biofuels created and is made up of edible sugars and starches. The second and third generations are also known as advance biofuels. The advance biofuels are made of nonedible plants, materials, algae and other organisms. Chevron is currently focusing on the advance biofuels because according to Energy Sources” (2011) Chevron believes the biofuels can potentially “meet the worlds energy needs in the future”(Biofuels). Conclusion
Chevron has shown that they have financial stability and is continuously improving and growing their technology. Chevron makes changes and development to meet the needs of the community/environment/company while moving into the future.
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Biofuels. (2011). Retrieved from http://www.chevron.com/deliveringenergy/biofuels/ Energy Sources. (2011). Retrieved from http://www.chevron.com/deliveringenergy Solar energy. (2011). Retrieved from http://www.chevron.com/deliveringenergy/solar/ Exxon Mobil Corporation Common. (2012). Retrieved from http://finance.yahoo.com/q/bs?s=XOM+Balance+Sheet&annual References continued
Exxon Mobil Corporation Common. (2012). Retrieved from http://finance.yahoo.com/q/cf?s=XOM+Cash+Flow&annual Exxon Mobil Corporation Common. (2012). Retrieved from http://finance.yahoo.com/q/is?s=XOM+Income+Statement&annual